Rental surge and strong sales mark Auckland market
Auckland’s rental market saw a burst of tenant activity in July, but the spike had little immediate effect on average rents, according to Barfoot & Thompson’s latest Monthly Rental Market Update.
“During July, our teams rented a total of 676 properties. This was a 17% increase on the 575 properties rented in June, and the second busiest month in the past 12 months,” said Anil Anna (pictured), general manager property management for Barfoot & Thompson, which manages more than 20,000 homes across Auckland, Northland, and Bay of Plenty.
Enquiries and viewings jump sharply
Anna attributed the strong result to both a surge in tenant interest and a large pool of available listings, which totalled 803 at the end of July.
“Barfoot & Thompson rental listings attracted 26,758 enquiries across all platforms in July, up more than 33% on June,” he said in a media release.
“This led to more than 3,000 applications, up 19% on June and 3% in July 2024. We suspect the recent renters’ market conditions, with an extended period of flatter pricing and increased choice, have led more people to reconsider their options and start to explore what’s on the market.
“Our decision to host more property viewings has also been well received by interested renters; this month we held over 1,000 additional property viewings and hosted nearly 1,500 more groups at those viewings than in July 2024.”
Rents remain flat amid competition
Despite the pick-up in leasing activity, prices stayed largely unchanged.
“This is consistent with the market’s longer-term trend of stabilising prices and reflects the continued competition between the high number of listings available,” Anna said.
In Auckland, now ranked 16th globally for housing affordability after a construction-led supply boost, the average weekly rent edged up by about $1 from June to $694.59.
“This is an increase of less than 2% from July 2024’s average of $682.09, so still relatively flat compared to the 3% to 5% increases seen in recent years,” Anna said.
“Competitive pricing and housing quality are key for renters, and they are taking their time to find the right property. Landlords are also recognising the importance of meeting these market expectations to ensure their property is let swiftly.”
Three-bedroom homes lead price gains
By property type, three-bedroom homes recorded the strongest movement, with average rents up 2.3% year-on-year. By location, the North Shore and Franklin saw average rents 2.5% higher than a year earlier.
The Central City apartment market fell 1%, reflecting a correction after strong growth in late 2023 and early 2024.
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